Oakmark: Credit Downgrade Represents an Opportunity for Investors

The first-ever downgrade of U.S. credit is an opportunity for value investors, Oakmark Funds manager Bill Nygren wrote in a message to investors last week.

Most of what has been said about the Standard & Poor's downgrade of the U.S. credit rating is speculation, he notes, because it's never happened before. "But there is one fact that ought to be mentioned," Nygren wrote. "U.S. Treasury securities actually rallied on Monday following the downgrade...This was not what normally happens when a credit rating is cut, and shows that investors did not become more concerned about the U.S.' ability to pay its debt."

To read Nygren's commentary, click here.

Oakmark Equity & Income is a component of the Bradway Strategic Portfolio, while Oakmark International Small-Cap and Oakmark Global are components of many client accounts.